COREDO > Company Formation in Monaco

Company Formation in Monaco

Why Register a Company in Monaco

Monaco is one of Europe’s most prestigious jurisdictions, offering a developed financial sector, a stable economy, and a strong international business reputation.

The Principality provides foreign investors with a favourable tax environment, reliable banking infrastructure, and access to European markets. Monaco remains a sought-after jurisdiction for international business, financial services, trade, and investment projects.

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Types of Companies in Monaco

Several legal forms are available for conducting business in Monaco, each designed for specific purposes and scales of activity.

SAM (Société Anonyme Monégasque)

Joint-stock company. Suitable for insurance, commercial, and financial activities. Incorporation requires a minimum of two shareholders (individuals or legal entities). The minimum share capital is EUR 150,000, divided into shares. A SAM is managed by a board of directors (Conseil d’Administration) comprising at least three members. Establishment of a SAM is authorised by decree of the Minister of State (Ministre d’État) and published in the Journal de Monaco. This form is mandatory for certain types of activity, including insurance and banking.

SARL (Société à Responsabilité Limitée)

Limited liability company. The most common form for medium-sized business in Monaco. A minimum of two and no more than one hundred founders are required. The minimum share capital is EUR 15,000, which must be fully paid up upon incorporation. A SARL is managed by one or more managers (gérants), appointed by the founders. The liability of participants is limited to the amount of their contribution to the share capital.

SNC (Société en Nom Collectif)

General partnership. Formed by a minimum of two partners who bear unlimited joint liability for the company’s obligations. This form does not require a minimum share capital and is suitable for small businesses where partners are prepared to bear full liability. All partners have the right to manage the company unless otherwise stipulated in the partnership agreement.

SCS (Société en Commandite Simple)

Limited partnership. Combines general partners (commandités) with unlimited liability and limited partners (commanditaires) whose liability is limited to the amount of their contribution. The company is managed exclusively by the general partners, while the limited partners act as investors.

Foundation

A legal entity combining features of a trust and a company. It may be established by citizens of Monaco or persons who have been residing in the Principality for more than one year. Foundations in Monaco are widely used for family asset management, estate planning, and charitable activities.

In addition, foreign companies may open a branch or representative office in Monaco, provided they submit the parent company’s financial statements for the last three years, have an office in the Principality, and appoint a local manager. A branch is not a separate legal entity and acts on behalf of the parent company.

Registration Procedure

Company registration in Monaco begins with obtaining a mandatory authorisation from the Direction de l’Expansion Economique (Department of Economic Development). For non-residents of the Principality, obtaining a business licence from the Minister of State is a mandatory requirement. The procedure includes the following main stages:

Preparation of the articles of incorporation and company statutes
Submission of an application to the Direction de l’Expansion Economique specifying the type of planned activity
Review of the application and obtaining authorisation from the Minister of State
Notarisation of the founding documents by a local notary
Opening a bank account with a local bank and depositing the share capital
Registration of the company in the Répertoire du Commerce et de l’Industrie (Commercial Register)
Publication of company details in the Journal de Monaco

Required Documents

To register a company in Monaco, the following documents must be prepared:

the articles of incorporation and company statutes, certified by a local notary;

identification documents of the founders and directors (passports, criminal record certificates);

proof of a registered office in the Principality (lease agreement or proof of ownership);

a notarised bank certificate confirming that the share capital has been deposited;

a statement describing the planned activity and business plan;

registration forms indicating the civil status of the partners.

All documents in foreign languages must be translated into French and duly certified. Foreign founders may also be required to provide documents confirming their professional qualifications in the chosen field of activity.

Registration Timelines

The company registration process in Monaco takes from 2 weeks to 1 month, provided a complete set of documents is submitted and approval is obtained from the Direction de l’Expansion Economique. Actual timelines depend on the chosen legal form and the complexity of the planned activity. For a SAM, the procedure may take longer as it requires a decree from the Minister of State. It is important to note that all documents must be translated into French and duly certified, which also affects the overall timelines.

Cost of Services

The cost of COREDO’s company formation services in Monaco depends on the chosen legal form, business structure, and the scope of additional requirements. Upon registration, a state registration tax of 1% of the share capital is payable, as well as notarial fees for the certification of founding documents. The cost of renting office premises in the Principality should also be factored in, as it is a mandatory requirement for conducting business. To receive a personalised quote, contact our specialists — we will prepare a detailed commercial proposal tailored to your goals and the specifics of your business.

Tax System of Monaco

Monaco’s tax system offers significant advantages for business. The corporate income tax (Impôt sur les bénéfices) is 25% and applies only to companies generating more than 25% of their revenue outside the Principality. Companies earning 75% or more of their income within Monaco are fully exempt from corporate tax.

New companies benefit from tax holidays: full exemption from corporate tax in the first two years of activity, followed by a gradual increase — 6.25% in the third year, 12.5% in the fourth, 18.75% in the fifth, and the full 25% from the sixth year onwards.

Monaco does not levy personal income tax, capital gains tax for individuals, or inheritance tax in the direct line, making the Principality particularly attractive for wealthy entrepreneurs and investors.

The standard VAT rate (TVA) in Monaco is 20%, in line with France, with which Monaco forms a customs union. Upon company registration, a registration tax (droit d’enregistrement) of 1% of the share capital is payable. Annual fixed fees are also applicable for renewal of the registration and maintaining the company in active status.

Opening a Bank Account

Opening a bank account with a local bank is a mandatory step in the company registration process in Monaco. The entire share capital must be deposited into the account before the official registration. Monaco’s banking sector is characterised by high reliability and strict compliance with international anti-money laundering (AML) standards. Banks conduct thorough checks of beneficial owners and the sources of funds, so it is recommended to prepare a complete set of documents confirming the origin of capital in advance. COREDO provides assistance in selecting a suitable bank and preparing the documents for opening a corporate account.

Our Experts

The COREDO team has been operating since 2016, with deep expertise in company registration across various European jurisdictions.

Nikita Veremeev

Founder & NED of COREDO. Founded the company in 2016 and personally oversees the strategic development of business across dozens of jurisdictions.

Pavel Kos

Head of Legal. Has been with COREDO since June 2017, responsible for the legal support of corporate projects and company registration.

Basang Ungunov

Lawyer. Has been with COREDO since June 2022, specialising in legal support for the registration and structuring of companies in various jurisdictions.

Frequently Asked Questions

Is government authorisation required to open a company in Monaco?

Yes, obtaining authorisation from the Direction de l’Expansion Economique is mandatory for all persons who are not citizens of Monaco. The authorisation is issued by decree of the Minister of State following review of the application and approval of the type of activity.

What is the minimum share capital required for company registration?

The minimum share capital depends on the legal form: for a SAM (joint-stock company) it is EUR 150,000, and for a SARL (limited liability company) it is EUR 15,000. The entire share capital must be deposited into an account with a local bank before the registration.

Are companies in Monaco subject to corporate tax?

Corporate tax at a rate of 25% applies only to companies generating more than 25% of their revenue outside Monaco. Companies with predominantly domestic turnover (75% or more within the Principality) are exempt from income tax. New companies benefit from tax holidays — full exemption in the first two years.

How long does it take to register a company in Monaco?

With a complete set of documents, the registration process takes from 2 weeks to 1 month. Timelines may vary depending on the chosen legal form and the complexity of obtaining regulatory approval for the type of activity.

In what language must the registration documents be prepared?

All founding and registration documents must be prepared or translated into French — the official language of Monaco. Documents in foreign languages require a notarised translation. The company statutes and articles of incorporation are certified by a local notary in Monaco.

What are the advantages of Monaco's customs union with France?

Thanks to the customs union with France, companies registered in Monaco gain free access to the French market and, through it, to the European Union’s single market. This means the unimpeded movement of goods without customs duties and simplified trade procedures with EU partners.

Ready to Get Started?

Company formation in Monaco is a strategic decision that requires professional support. COREDO specialists will assist you at every stage: from choosing the legal form to obtaining authorisation and registration in the commercial register. Contact us for a free consultation.